EMPLOYERS in Ludlow and south Shropshire are struggling to find the right staff.

Despite an increase in unemployment as a result of the Covid-19 pandemic, some businesses cannot find people with the skills that they need.

Another problem that is making recovery more difficult is an increase in the cost of raw materials.

Shropshire businesses are continuing to recover from the depths of the Covid-19 pandemic, with some sectors now returning close to their pre-lockdown levels.

But significant challenges still remain for many companies, including a shortage of qualified staff, and growing pressure from the rising cost of raw materials.

These are some of the headline findings from the latest quarterly economic survey carried out by Shropshire Chamber of Commerce, covering the second quarter of the year.

The survey found that around a third of Shropshire businesses are now working at full capacity, compared with little more than 10 per cent in the first months of the pandemic.

There are still signs of caution, however, with no signs of increased investment in either plant and machinery, or training.

And nearly three quarters of Shropshire businesses which responded to the survey said they were now coming under pressure from an increase in raw material prices.

“When it comes to the greatest pressures on our businesses, competition still leads the way, just as it did before the pandemic,” said Richard Sheehan, Shropshire Chamber’s chief executive.

“Inflation and taxation are the next greatest worries, while 40 per cent of businesses now feel that Brexit has had a negative effect on their business.

“Business confidence levels continue to improve, however, with nearly two thirds of Shropshire employers predicting a rise in turnover during the coming year, and 45 per cent expecting a rise in profitability too.

“We are certainly not out of the woods yet, though, far from it, in fact. Thousands of employees are still on furlough, so we have yet to see the full impact of the pandemic on the county’s employment market.”

The chamber say more than half of employers are struggling to find the right staff.

“The most difficult to find were skilled and semi technical or manual staff, along with a lack of overseas workers which traditionally fill many of the low skilled positions,” added Mr Sheehan.

Shropshire’s findings feed into the British Chambers of Commerce’s Quarterly Economic Survey, the UK’s largest independent survey of business sentiment and a leading indicator of UK GDP growth.

Nationally, the survey shows that some key indicators, such as domestic sales and business confidence, displayed significant rises as Covid-19 restrictions eased.

However, it also showed steep rises in the number of firms, particularly manufacturers, expecting to raise prices, and in businesses citing inflation as a cause of concern.

Consumer services had the smallest proportion of firms reporting increased domestic sales the second quarter, followed by hotels and catering.